The Abu Dhabi government-owned International Petroleum Investment Company (IPIC) denied on February 12 it was negotiating to acquire a share in Schaeffler or its 49.9 per cent owned subsidiary Continental. In a statement, IPIC managing director Khadem al-Qubaisi said “this speculation has surfaced recently in the German media. We are quite surprised that this has arisen at all.”
In these froward economic times, it is difficult to make plans. Apollo Tyres, however, appears to be pressing ahead with its inroads into European markets. The company’s chairman and managing director Onkar Singh Kanwar recently spoke to India’s largest financial daily, The Economic Times, and explained why exports are so important for Apollo at present.
“The passenger car segment (in India) has been badly impacted,” related Kanwar. “As car sales have plummeted, tyre sales have also gone down proportionally. Apollo Tyres however has managed to maintain a growth of 22 per cent despite the overall scenario, as exports have helped in tiding over this period so far.” He added that, in this most recent financial quarter, exports grew by 37 per cent year-on-year.
A letter to shareholders in Advanced ID Corporation, sent by company chairman Seymour Kazimirski on February 9, indicates that changes to the firm’s UK operations are afoot. Specific details of these changes and what they mean to the company’s Derbyshire based Pneu-Logic subsidiary, however, were not set out.
“As we enter the New Year, I would like to take this opportunity to summarise the goals we have established for 2009,” began Kazimirski. “You are all well aware of the challenges we faced in 2008 with the systemic breakdown of the capital markets worldwide. More specific to Advanced ID, we experienced the meltdown of the auto industry, which has greatly impacted the tyre industry. Estimates of decreased global tyre production are upwards of 40 per cent. We are working to meet these challenges.”
Bill Berry has been tipped to be American Tire Distributors’ new CEO and president with the pending retirement of Dick Johnson, who will step down on 5 April. Berry, currently president and COO, joined ATD in 1998 when ATD (then Heafner Tire) merged with Itco Tire Co. He became executive vice president and COO in January 2002 and was named president and COO in May 2003.
Johnson will remain as chairman of the company for the next two years. He became chairman and CEO in May 2003, and during his tenure ATD doubled its sales to more than $2 billion and led the acquisition of numerous tyre distributors, including Am-Pac in late December.
“It has been my privilege to work closely with Bill Berry and the rest of the leadership team over the past decade to build a company that is stronger than ever and ready to shape the future of our industry,” said Johnson. “The changes announced today are the result of a succession plan developed over several years and designed to ensure a seamless transition and strength, stability and continuity of leadership for our company.” (Tire Review/Akron)
A number of HiQ fast fit premises have been taken over by Chris Kisby’s Easy Autocentres. A total of 27 centres are included in the deal, including the company’s flagship Nottingham outlet. Following the acquisition from Goodyear Dunlop, Easy Autocentres is set to become one of the Midland region’s largest fast fit operators, with a turnover of around £10 million.
The ongoing struggle between Continental AG and its major shareholder, Schaeffler Group, took a new twist yesterday when the Financial Times (FT) reported that Schaeffler wanted to force our Conti’s supervisory board chairman, Hubertus von Grünberg. According to FT, Schaeffler executives have fallen out with von Grünberg over his “systematic sabotage” of their plans.
FT reported that von Grünberg was told he should resign and make way for Schaeffler to be given four board seats, or the ball bearing maker would force an extraordinary shareholders’ meeting to replace all 10 members. Neither side has commented publicly about the reports.
Bienes Turgon, S.A., a Mexican holding company with interests in the automotive industry through its subsidiary Katcon, S.A., has announced the acquisition of Delphi Corporation’s global exhaust system business in its entirety. The transaction, covered by a Master Sale and Purchase Agreement and financed with an equity increase and existing cash reserves, is expected to be closed during the first half of 2009.
Automotive industry rubber products supplier Dongah Tire & Rubber has announced the December 31, 2008 acquisition of Avon Automotive’s Vibration Management Systems (VMS) business, which is headquartered in the Wiltshire town of Chippenham. The VMS business designs, manufactures and supplies engine and suspension mounts, mass dampers, tank track pads and other vibration management products to leading global automotive and defence customers in Europe and North America.
Unhappy in your job? Go and work for Continental. A survey undertaken in Germany indicates that workers at Continental are happier with their employer than the ‘industry benchmark’. And while Conti doesn’t state that its staff spring out of bed each morning with an unquenchable enthusiasm for the day’s work that lies ahead, it comments that the findings of the “BASICS live” employee survey conducted by the University of Manheim, in collaboration with the tyre and automotive components manufacturer, show Conti to have faired far better than the benchmark results in several subject areas.
North Carolina, US based company American Tire Distributors has purchased California based Am-Pac Tire Distributors through a stock purchase deal. The acquisition, announced in December, is said to bring together two former competitors in a way that strengthens American Tire’s geographical distribution and builds upon its existing marketing through Am-Pac’s ‘Tire Pros’ franchise programme.
American Tire bought Am-Pac from Itochu Corporation. The Tokyo, Japan-based conglomerate had owned Am-Pac since 1999. Itochu also owns leading UK tyre distribution business, Stapleton’s.
Schaeffler Group has received the go-ahead from the EU Commission to formally file its Continental AG merger notification, but speculation remains that Conti’s new owners may sell some of their assets. In an official statement Schaeffler Group reported that it will submit the documents required for initiating a merger clearance examination today (14 November 2008). “We will implement our strategy according to plan and conclude the takeover after approval from the EU Commission,” said Dr. Jürgen M. Geißinger, Schaeffler Group president and CEO.
However while Schaeffler’s public comments are fine-tuned to communicate that the merger plans are on track, details of whether or not tyres will figure in any possible future merged company are noticeable by their absence. In the EU approval statement Dr. Geißinger said Schaeffler would aim to combine the two companies strengths in “mechanical, mechatronic and precision components for engines, transmissions and chassis with Conti’s strengths in electronic, software and system solutions for engines, chassis and the passenger compartment” so together Schaeffler and Continental can “develop systems for reduced fuel consumption such as hybrid and electrical drives.” Tyres were not defined as one of Continental’s strengths.
Affinia has completed the acquisition of 85 per cent of Chinese brake component maker HBM Investment Ltd., owner of Longkou Haimeng Machining Co. Located in Shandong, China, Longkou Haimeng produces brake drums and rotors, and has a strong OE and aftermarket presence in Asia and Europe. (Tire Review/Akron)
2009 is set to be a tumultuous, but “exciting” year for the UK tyre market. According to data supplied analysts at Plimsoll Publishing, UK tyre manufacturers and distributors need to be ready and prepared for a series of unique opportunities that will present themselves in the year ahead.
The overall tyre financial conditional of tyre manufacturers and distributors “is not in bad shape,” say Plimsoll. Sales growth is running at a little over 2.6 per cent, which is actually up on the previous year. However, it is not clear whether the latest data takes into account the full extent of the credit crunch. As the report says, “even the most bullish of companies will need to rethink for 2009.”
Research conducted by Business XL and patent mapping specialist Cambridge IP has named tyre sensor develop Transense Technology as a “perfect acquisition target.” According to the report, patent-rich ventures with healthy balance sheets and low market valuations are perfect takeover targets for companies seeking to expand.
Business XL identified AIM’s 68 most IP-intensive companies, which hold more than 5,000 patents between them, and has named the largest, smallest, best-performing, most cash-rich companies on the market. The study reveals that the ten most patent-rich companies on the market have filed more than 2,500 patents, while the ten most cash-rich intellectual property (IP) companies have £242 million on their combined balance sheets.
In the first nine months of 2008 Bekaert achieved consolidated sales of 2.047 billion euros and combined sales of 3.119 billion euros, an increase of 28.8 per cent and 24.0 per cent respectively. Bekaert reports that organic growth accounted for a growth in consolidated sales of 24.7 per cent, largely driven by the passed on raw material price rises, and the net movement in acquisitions and divestments in Vicson (Venezuela) and in Proalco (Colombia) accounted for 7.9 per cent. Exchange rate fluctuations tempered the growth by 3.8 per cent.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
